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dc.titleState Monopolies, Redistribution, and Productivity: Rethinking Ecuador’s Growth Constraints
dc.contributor.authorZanoni, Wladimir
dc.contributor.authorPedemonte, Mathieu
dc.contributor.orgunitCountry Department Andean Group
dc.coverageEcuador
dc.coverageEcuador
dc.date.available2025-02-26T00:02:00
dc.date.issue2025-02-26T00:02:00
dc.description.abstractEcuador's economic performance has lagged behind its potential and the broader Latin American region since 2010. Despite rising public debt and financial support from international institutions, Ecuador's economic growth remains stagnant. This paper seeks to characterize the key structural factors impeding Ecuador's economic growth and identify policies that could enhance it. We develop an analytical model framed within the Melitz (2003) framework to examine the implications of a state-controlled monopoly over extractive export-driven industries and the redistributive mechanisms that sustain low-productivity firms. Our findings indicate that redistribution policies sustain inefficient firms, hinder productivity growth, and entrench political incentives that perpetuate economic stagnation. This study contributes to the broader literature on state-owned monopolies and economic growth by illustrating the specific challenges faced by Ecuador and offering insights into policy reforms necessary to break the cycle of stagnation.
dc.format.extent10
dc.identifier.doihttp://dx.doi.org/10.18235/0013426
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/State-Monopolies-Redistribution-and-Productivity-Rethinking-Ecuadors-Growth-Constraints.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectSmall Business
dc.subjectEconomic Development
dc.subjectPetroleum
dc.subjectProductivity
dc.subjectIndustry
dc.subjectHigh-Productivity
dc.subjectSustainable Growth
dc.subjectDebtor Finance
dc.subject.jelcodeO43 - Institutions and Growth
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.jelcodeH11 - Structure, Scope, and Performance of Government
dc.subject.jelcodeH21 - Efficiency • Optimal Taxation
dc.subject.jelcodeL32 - Public Enterprises • Public-Private Enterprises
dc.subject.keywordsState monopolies;redistribution;Productivity;Ecuador;economic growth;public sector inefficiencies;structural constraints
idb.identifier.pubnumberIDB-TN-03095
idb.operationRG-P1844
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